Investing from at a young age

29 Jul 2019

Investing is overrated. It’s much more fun to spend your income rather than collect it and see the number increment. Or is it, investing is underrated? Investing should be encouraged and taught at a young age as it not only is beneficial financially but also instils values in people. It may be hard for teenagers to understand the benefits of saving their first pay cheque but explaining how the amount of money will increase over time will make the activity more attractive. 

Why should we start investing from a young age? A clear reason is that, logically, you have more time saving money thus will result in a larger amount. Saving does not mean keeping every euro and not buying anything but prioritising between what we want and what we need. By focusing more on what we need, we grow closer to reaching our aim. Also, as we grow older, we will find out that our needs are much more expensive than what we needed when we were younger. Therefore, it will be easier to reach a bigger sum if saving money was prioritised earlier rather than when reaching adulthood. 

Additionally, when differentiating between what we want and what we need, we are working on self-discipline – realising that it is better to stay away from something now and having money later for something that is much more needed or essential. Furthermore, a teenager would be practicing the act of saving rather than simply told how to do it at a later age. Young investors are more familiar with technology, more so if they are digital natives (born within the digital era). It will not only be more engaging but also more effective to research on investing techniques and methods.   

Thus, investing is not that overrated, but leads to much more than just financial income. Staying away from something now may help you buy your first car or go on a trip to a place that you really wanted to visit. Investing does not have to be boring. It’s only a matter of how much you learn throughout the experience!